Australia

Details

  • Service: Tax, Topics, Federal Budget
  • Type: Business and industry issue
  • Date: 14/05/2014

Federal Budget 2014

Federal Budget 2014
KPMG's review of the major implications arising from the 2014 Federal Budget.

Federal Budget contacts

If you would like to discuss the 2014 Federal Budget, please contact your KPMG adviser or one of our KPMG professionals.

Federal Budget Brief 2014 

The Federal Budget 2014 focused on the expenditure side of the ledger for the longer term together with two revenue raising measures to substantially reduce the forecasted budget deficits. In the lead up to the Budget, the National Commission of Audit and economic commentators had a long list of recommendations on how to quickly put a stop to a decade of projected deficits.
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This Budget reduces the 2014-15 deficit by approximately $20 billion compared with the projected result for the current year and by approximately $4 billion compared with the December 2013 mid-year forecasts. Although, a significant proportion of this is due to changes in underlying economic conditions.

 

In essence, the Government's strategy centres on expenditure savings in the areas of health service contributions, foreign aid, education loan programs, family and other welfare benefits. Coupled with the reintroduction of fuel excise indexation and a personal tax increase, the Budget savings dramatically reduce the forecasted deficits.

 

The Budget also makes room for redirected expenditure priorities in infrastructure and the establishment of a medical research future fund.

 

KPMG's Federal Budget Brief 2014 provides insights for Australian business.

 

Key insights

  • The different impacts of this new budgetary framework are starkly evident when comparing business models with dependencies linked to social or industry welfare programs as against those focused on infrastructure.
  • The revenue projections make a strong case for tax reform.
  • There will be growing anticipation for the release of the 2015 White Papers on Taxation and Federation Reform.


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 Budget insights

Videos: Budget breakfast interviews and panel discussion

Watch interviews with David Linke, KPMG's National Corporate Tax Leader, and other speakers presenting at KPMG's budget breakfast in Sydney.

 

Video: David Linke on Federal Budget and Commission of Audit

Video: David Linke Pre-Budget insights, 2014 Federal Budget
National Corporate Tax Leader, David Linke, sets the scene for how the Commission of Audit may impact the 2014 Federal Budget.

Tax reform for our future success

Tax reform for our future success
As the tax reform debate increases, KPMG's paper Tax reform for our future success discusses the importance and difficulty of tax reform.
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